skip to main content
X

Connecticut Announces Employer Student Loan Repayment Tax Credit

Connecticut Announces Employer Student Loan Repayment Tax Credit

The Connecticut Department of Economic and Community Development recently announced the Employer Student Loan Repayment Tax Credit as an incentive for businesses to assist their employees in paying down their student loans.

The program comes after President Biden’s student loan repayment program was struck down in the United States Supreme Court.

Details on the credit

The tax credit is available to employers that make payments on behalf of their employees with Connecticut Higher Education Supplemental Loan Authority (CHESLA) loans and:

  • Credits are worth up to $2,625 per employee.
  • The credit is refundable for businesses with less than $5 million in gross receipts in a certain year.
  • Employees must be a resident of Connecticut, be employed full time and have received their bachelor’s degree within the last five years.
  • Employees cannot be an owner, member or partner of a qualified employer OR a family member of an owner, member or partner of a qualified employer.

CHESLA and the Rhode Island Student Loan Authority (RISLA), both nonprofit state authorities that help students and families finance the cost of higher education, have provided access to a webinar with more details on how the credit works.

Qualified employees that have loans outside of CHESLA are able to refinance their loans. Eligible employers can determine their contribution and frequency of payments, and the program comes at no cost to the employers besides a recurring $4 transaction fee.

More information on the credit and access to the required forms can be found on Connecticut Department of Revenue Services’ website.

 

07/18/2023

Have a Question?

Fill out the form to speak with our professionals.

Hide Firm Disclaimer

©2023 UHY LLP. ALL RIGHTS RESERVED.

UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.